Menu
KIT Digital and Hyro go into administration

KIT Digital and Hyro go into administration

Invigor Group is taking legal action against KIT in the US after misrepresenting its finances

ASX-listed IT investment company, Invigor Group (ASX:IVO), will take legal action against US-based video management software provider, KIT Digital, which placed its Australian arm into administration.

PPB Advisory was appointed as the administrator on December 21. KIT’s subsidiaries Idapative and Hyro Digital have also been placed into administration.

Administrators were appointed not long after KIT was delisted from the Nasdaq and dismissed Grant Thornton as its independent auditor.

Hyro Digital was sold to KIT in June last year for $2 million in cash and 1.84 million in shares. After the sale to KIT, Gary Cohen’s Marcel Equity Group injected $1.24 million into Hyro and he became the company’s chairman. In October, Hyro was renamed as Invigor Group.

Cohen opposed Hyro’s sale to KIT and was lobbying investors not to accept the offer.

According to a statement on the ASX, Invigor is launching legal action in the US for $15.2 million for unspecified damages for misrepresentation and breaches of contract with regard to the Share Purchase Agreement (SPA).

“KIT has previously announced its accounts were not accurate at the time it entered into the SPA and that it’s replacing its auditor. KIT has also not completed on the top-up mechanism process contained in the SPA,” the statement said.

According to a report KIT Digital was experiencing financial difficulties and about 90 jobs will go. The amount owed to creditors hasn’t been disclosed at this stage.

Read More:

Follow Us

Join the ARN newsletter!

Error: Please check your email address.

Tags PPBHyro LimitedGary Cohenadministration

Slideshows

IN PICTURES: ARN Emerging Leaders Think Tank, Sydney (+40 photos)

IN PICTURES: ARN Emerging Leaders Think Tank, Sydney (+40 photos)

Twenty-one industry leaders came together with ARN staff for an Emerging Leaders Think Tank, held at The Bottle Shop in Sydney​. The aim of the planning session was to develop a compelling program for high potential leaders in the Australian ICT industry.​ Over two hours of strong debate a core line of thought evolved which will form the basis of the Emerging Leaders Forum to be held on May 17 in Sydney. Photos by MARIA STEFINA.

IN PICTURES: ARN Emerging Leaders Think Tank, Sydney (+40 photos)

iasset.com is a channel management ecosystem that automates all major aspects of the entire sales, marketing and service process, including data tracking, integrated learning, knowledge management and product lifecycle management.

Show Comments